The Petroleum Products Retail Outlet Owners Association of Nigeria has warned the Federal Government against banning fuel importation following President Bola Tinubu’s approval of the Renewed Hope Nigeria First policy.
This comes as the Organised Private Sector and some government officials laud the initiative, stressing that it will benefit local manufacturers of the affected goods.
The Renewed Hope Nigeria First policy mandates all federal ministries, departments, and agencies to give absolute priority to Nigerian goods, services, and know-how when spending public funds.
The Minister of Information and National Orientation, Mohammed Idris, revealed this to State House correspondents after Monday’s Federal Executive Council meeting at the Aso Rock Villa, Abuja.
The directive “puts Nigeria at the centre of every kobo the government spends,” he said, adding that an Executive Order to give it full legal force will be issued within days.
Reacting to this on Tuesday, PETROAN said banning fuel importation could lead to shortages or profiteering, adding that the nation’s refining capacity is still low.
In a statement by PETROAN’s spokesman, Joseph Obele, the association cautiously welcomed the Federal Government’s decision to ban the importation of foreign goods produced locally, but emphasised the need for careful implementation to avoid unintended consequences.
The association urged the government to ensure that the policy does not lead to shortages or price increases, “particularly in the petroleum sector, where local refining capacity is still being developed.”
PETROAN expressed concerns that the policy could worsen Nigerian inflation, emphasising the need for energy security.
“Our primary concern is the availability and affordability of petroleum products in Nigeria to meet the daily consumption volume of over 46 million litres of petrol and other petroleum products. We must ensure that our policies do not compromise energy security, as this could have far-reaching consequences for the economy and the well-being of Nigerians,” the retailers said.
The association called for increased investment in local refining infrastructure and support for domestic industries to enhance their competitiveness.
The National President of PETROAN, Dr Billy Gillis-Harry, was said to have applauded President Bola Tinubu for the bold step, warning, however, of potential pitfalls.
Gillis-Harry advised the government on the import policy, as he cautioned against economic shock.
While commending the government’s efforts to strengthen the domestic economy and promote local content, PETROAN emphasised the need for careful consideration to avoid unintended consequences.
OPS reacts
The Manufacturers Association of Nigeria welcomed the Federal Government’s ‘Nigeria First’ policy, calling it a “welcome development in the right direction” that “will send the right signals and raise consumer confidence in made in Nigeria products.”
The Director-General of the Association, Segun Ajayi-Kadir, noted that the policy would bolster demand, improve capacity utilisation, and attract investments into the manufacturing sector.
“We see this initiative as a true and definite demonstration of the government’s commitment to promoting local industries, boosting economic growth, and creating jobs for Nigerians,” Ajayi-Kadir stated. “By giving preference to locally produced goods and services, we can stimulate demand, increase capacity utilisation, and attract investments into the manufacturing sector.”
According to Ajayi-Kadir, MAN believes that the internal-facing policy will have a multiplier effect on the country’s economy, grow the Gross Domestic Product by 56 per cent, and enhance the competitiveness of Nigerian industries.
Citing an earlier MAN survey, the DG remarked, “The effective implementation of such an initiative ( as should be stipulated in the consequential executive order) would scale investments and potentially boost GDP by 56 per cent, reduce unemployment by 37 per cent and increase firms’ willingness to employ from 1.5 per cent to 22.6 per cent.”
The association recalled that manufacturers had long anticipated a policy prioritising patronage of made-in-Nigeria goods and services, and called on all tiers of government, private sector entities, and individuals to support the initiative.
Also, the Centre for Promotion of Private Enterprise hailed the Nigeria First policy as commendable while dismissing concerns that it could lead to a monopoly in the downstream petroleum sector.
In a phone interview with The PUNCH, CPPE Director Dr Muda Yusuf disagreed with claims that the recently approved procurement policy could enable a monopoly over petroleum products importers, particularly from the Dangote Refinery.
He argued that any fears of a monopoly may arise from downstream sector players categorising the Nigerian National Petroleum Company Limited as one of the government Ministries, Departments and Agencies with procurement powers.
Yusuf queried, “What has the importation of oil got to do with government procurement? Well, maybe the NNPC people are seeing themselves as one of the government MDAs.”
He urged players in the downstream sector to allay their fears by working to set up extra refineries while maximising the four NNPC-operated refineries, especially those in Warri and Port Harcourt.
“If they want to compete with the Dangote Refinery, they should go and set up their own refinery,” the CPPE boss maintained. “What the government is saying is that whatever we are producing, if it is sufficient, don’t go and import it. So, if they don’t want a monopoly, let all the other refineries work. NNPC has four refineries. If they are not able to refine, whose fault is that?”
Yusuf further argued that the claims of a monopoly appear improbable because of the absence of a level playing field between importers of petroleum products and local refiners.
“There is no level playing field. Imported fuel and fuel that is locally produced are not the same thing,” he explained. “There is no fair competition because, for the person importing petroleum products, the environment is different, the cost of production is different, the regulatory environment is different, and maybe the quality itself is different. When we are talking about competition, it has to be somebody producing locally, competing with another person producing locally.”
Additionally, Yusuf called on the Federal Government to broaden the inward-facing procurement policy to mildly cover elements of trade policy to protect domestic manufacturers while arguing against a protectionist extreme.
“I’m not saying that we should go to the extreme like has been done in the United States, but there has to be some deliberate policy to protect companies that are producing locally,” he added.
On his part, the National President of the Association of Small Business Owners of Nigeria, Dr Femi Egbesola, said the resistance from petrol marketers was understandable.
He said, “Any policy that shifts market dynamics, like prioritising locally refined petrol and banning imported goods that are locally available, naturally threatens existing interests. Their concern about a potential monopoly in the downstream sector highlights a real risk: if domestic production is not yet robust or diversified enough, we may see a few players dominating the market, which could hurt competition and inflate prices.
“In sectors beyond petroleum, banning imported goods that are already locally available can spur local industries, but only if those industries are truly prepared to deliver a consistent supply. Otherwise, consumers could face shortages or higher prices.
“This policy, in principle, aligns with economic patriotism and self-sufficiency goals. However, its success depends on sequencing and discipline: developing local capacity first, ensuring market competitiveness, and maintaining an adaptive, transparent regulatory environment. If rushed or poorly regulated, the policy might backfire by fostering monopolies or stifling consumer choice.”
Ndume hails Tinubu
The lawmaker representing Borno South, Ali Ndume, commended President Bola Tinubu over the embargo on the importation of foreign goods. The former Chief Whip of the Senate gave the tribute in a statement issued in Abuja.
Ndume described the move as a bold initiative that would go a long way in promoting indigenous entrepreneurs, boost the local economy and generate employment for Nigerians.
He said, “It is heartwarming to hear that President Tinubu has taken this bold decision to ban imported goods that can be produced locally. This will be a major boost for indigenous businesses amid the slipping Nigerian economy.
“If implemented faithfully, it will shield our local producers striving to find their feet from being choked out of existence by established foreign investors who flood our market, unhindered, with goods that are cheaper and even substandard.
“With protection of local industries, there will be employment for our employable youths, the measure will also boost our Gross Domestic Product and the value of Naira will appreciate as there will be less strain on our foreign reserves, since the demand for foreign exchange by importers of such foreign goods would drastically reduce.”
The senator also urged the Federal Government to seek to impose heavy taxes on some of the foreign goods to discourage Nigerians from ‘buying them instead of picking locally produced items.’
